Which of the Following Is Necessary in Order for a Business

question 108

Multiple Choice

Which of the following is necessary in order for a business to qualify as an S corporation?

• A)No more than 100 shareholders
• B)Only individuals,trusts,and (in certain circumstances)corporations as shareholders
• C)At least $10,000 in capital
• D)No more than 100 shareholders; only individuals,trusts,and (in certain circumstances)corporations as shareholders; and at least $10,000 in capital
• E)No more than 100 shareholders and only individuals,trusts,and (in certain circumstances)corporations as shareholders; however,there is no requirement of at least $10,000 in capital

---

Definitions:

Agricultural Products

Goods derived from farming and agriculture, including crops, livestock, and other raw materials.

Demand Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating consumers' sensitivity to price changes.

Farm Production

The process and output involved in the cultivation of crops and the rearing of livestock for economic purposes.

Conservation Reserve Program

A land conservation program initiated by the U.S. government to improve water quality, prevent soil erosion, and enhance habitats for endangered and threatened species.